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2015 (1) TMI 1011 - AT - Income TaxRevision order - change of heart - whether a revision proceedings, which started with a show cause notice condemning the action of the Assessing Officer on merits, can lawfully culminate in the direction that the subject matter of revision proceedings be decided afresh in accordance with law and after making proper inquiries? - Held that:- In the impugned revision proceedings, learned Commissioner started by pointing out, what he saw as, glaring illegalities in the assessment order, which was subjected to revision proceedings, but what he concluded was that the said assessment order was passed without making “proper requisite and desired inquires”. What the assessee was required to demonstrate the incorrectness of the learned Commissioner’s stand to the effect that, because of the five additions/ disallowances, as set out in paragraph 3, not having been made, the order is erroneous and prejudicial to the interest of the assessee. Learned Commissioner proceeded to observe that “Had the said additions/ disallowances been made, there would have been substantial tax effect and thus the cause of revenue has suffered. Further, the order of the AO is in clear violation of the legal provisions as enumerated in the Income Tax Act, 1961. Thus, the very sanctity of the Act has been eroded and may serve as a very bad precedent”. Yet, finally he revised the order for want of “proper requisite and desired inquires” and thus shifted the goalpost. That’s not permissible under the scheme of the law, as a revision order can only be passed on the ground on which the assessee has been given reasonable opportunity of being heard, and as it is not open to Commissioner to set out one reason for revising the order but actually revise the order on some other ground. In our humble understanding, lack of proper inquiries, which an Assessing Officer ought to have conducted on the facts of the said case, is altogether a different reason from inadmissibility of a claim of deduction or an income which ought to have been brought to tax. In view of the above discussions, as also bearing in mind entirety of the case, we are of the considered view that the impugned revision order is contrary to the scheme of law, and should be quashed for this reason alone. - Decided in favour of assessee.
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